Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-07-30
service formerly performed by teams and pack

service formerly performed by teams and pack
animals.
UNABLE TO ENLIST CAPITAL
The Union Pacific Railroad was unable to en-
list capital to undertake the construction of the
road under the provisions of the Act of 1862
The public mind was so thoroughly impressed
with the difficulties of the construction of a
railroad on the central line that it could obtain
no money for that purpose In addition TO this
the war had destroyed public confidence and
added largely to the difficulties of the enterprise
The Central Pacific was also unable to avail IT.
self ofthe provisions of the Act. It was, how
ever, State corporation and continued to strug-
gle to construct road over the Sierra Nevada
mountains. Some aid was exter ded by the State
of California by the payment of interest on
million and half bonds, and in bonds of sew
eral of the counties of the State, all of which
have been fully reimbursed, except the city and
county of San Francisco, which compromised
its subscription of 100000 to the stock of the
company by paying 100000 in the bonds of the
city after a long litigation.
With the private means of the corporation.
and the aid above mentioned, ii commenced
the work of construction in 1853, and continued
it until the road was completed, in 1869 In 1854
Congress became sati sled that the road could
not be built on the terms and conditions pro-
vided in the Act OF 1862, and passed supple
mentary Act containing important modifica-
lions, viz: It doubled the amount of the land
grant. 1t further provided that the company
might execute first mortgage, on the road for
an amount equal to the Government bonds and
confined the payments required from the COM
pany to one-haf of the compensation due from
the Government and the five per cent of the
net earnings named in the original Act. It re.
served lien upon the road for the performance
of these obligations
A POLITICAL NECESSITY.
The argument in favor of these notifications
was that the road was political necessity, and
must be built at whatever cost, and it was Con
tended that one-half of the compensation due
from the Government for services, together with
the five per cent. net earnings, would pay the
bonds before maturity, which would have been
the case If the Government, upon the compile
ton of the road, had not reduced the compen-
sation below what was previously paid. The
time limited by Congress for the construction of
the road extended to July, 1876 but universal
desire was expressed by Congress and the eoun-
try for an earlier date.
LOCAL OPPOSITION.
As before remarked, the Central Pacific Com
pany were compelled to build over the Sierra
Nevada mountains which had been pronounced
impossible for railroad not only by the public
at large, but by many engineers This alone
would have made the negotiation ofits securities
difficult, but added to this there was much local
opposition. The construction of the railroad an
tagonized the telegraph company, the sitka Ice
Company, the California Steam Navigation Com
pany. the Pacific Mail Steamship Company, the
various toll-road companies, the contractors for
the Government, the Sacramento Valley Rail
road Company, Wells, Fargo & Co.. and all the
various transportation interests because its COM
pletion would interfere with or practically de-
stroy their respective business organizations.
These interests largely influenced the public
press of the Pacific coast, and they also COM
bined to destroy the credit of the company. and
to prove to the world that its undertaking was a
fraud and farce, which must necessarily cul-
inmate in failure. Under these circumstances
the road across the Sierra Nevada mountains
was constructed, and the will and energy mani
tested BY the company attracted the attention of
Congress and induced another change in the
law. 1t will be borne in mind that the original
Act conferred on the Central Pacific the right to
build to the east line of the State of California
In 1866 that limitation was removed and IL was
provided that both the Union and Central Pacific
railroads might continue to build until connec-
ton was made by n continuous line of railroad
At that time the Central Pacific Company was
surmouGting difficulties on the Sierra Nevada
mountains which had hitherto been regarded a.
obstacles which could not be overcome while
the Union Pacific Company had scarcely made a
commencement. The road of the latter com
pany was then constructed but a few miles west
of the Missouri river, although it had level
plain for more than five hundred miles west of
Omaha.
THE LAST SPIKE DRIVEN
This Act was passed to hasten the completion
OF the road, and it accomplished the purpose de-
sired. The last spike was driven in May, 1869,
seven years before the expiration of the time
limited in the original Act. The companies very
justly regarded this Act as an indication by Con
gress that speedy construction of the road was
demanded To meet this demand both com
panies made great sacrifices. The loss sustained
by the Central Pacific Company in thus comply
ing with the manifest design of Congress for the
speedy completion of the road was very great
The company did not wait for completion OF a
continuous line to convey materials and supplies
for the construction of the road on the contrary.
by means OF teams and pack mules, it transported
supplies for hundreds of miles IN advance of
completed construction. 1t even conveyed rail
road iron locomotives and other materials by
teams in winter over the deep SHOWS on the
Sierra Nevada mountains, where little but tuu-
mel work could be done in that season of the
year for the construction of the road beyond
and built many miles of road before connec-
ton was made Herewith.
l desire TO call the attention of the Commits
sion to some of the sacrifices made by the COM
pany in hurrying the work to its early compile
ton. The bonds issued BY the United States to
the company on account of the war were dis
posed of at a discount of over $1,000 900. This
discount, with the interest on the same until the
maturity of the bonds, will amount In round
numbers to $40, 100000. There was also like
discount suffered on the first-mortgage bonds
issued by the company; whereas, if the full time
allowed by Congress had been occupied in the
construction of the road, these bonds could have
been sold at par. At the time the road was CON
structed the prices of labor and materials in Cal.
hofuld' NSNdOd ana Otan were enormously IN
fated, not only on account of the war prices
which then prevailed and the war risks which
were incurred in transporting material from the
East by sea, but also by reason of the great min
ing excitement which then prevailed in Nevada
and California and absorbed nearly all the
available white labor.
II will be shown by the testimony of engineers
who had charge OF the construction of the road
and other competent witnesses, that the cost Of
construction was more than double what 1t
would have been had the company delayed its
final completion until July, 1876.
GREAT GOOD ACCOMPLISHED.
The Pacific Railroad has accomplished all the
good, both local and national, that was pre-
dicted by its most enthusiastic supporters It
has demonstrated the possibility of the construc-
ton of a transcontinental road it has proved to
the financial world that the great interior
abounds in resources, and has made it possible
for the construction of other transcontinental
roads with numerous branches and feeders it
has shown how the national domain can be
utilized it has encouraged the development of
the natural resources of California, and shown
that its products of fruits and wines can be